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India-based leading non-banking financial institution (NBFC), Indel Money is reportedly in talks with the U.S and Singapore-based private equity investors to divest 10-15 percent equity share for Rs 140 crores.
According to the reports, “With this disinvestment, the company aims to layout its faster growth trajectory by entering into new markets in FY22, and going for an eventual public listing.”
Speaking on the development, Umesh Mohanan, Executive Director and CEO, Indel Money said, “We are in active discussions with several PEs from the US and Singapore to raise capital. We can divest 10-15 percent of our equity to a good investor, for around Rs 140 crore, depending on the quantum of dilution, and a valuation north of Rs 400 crore. We hope to finalize the investor by December.”
Indel Money presently has 191 branches majorly in Kerala, Tamil Nadu, and Karnataka, and will open almost 100 more branches in Maharashtra, Telangana, and Andhra this fiscal, aiming to increase the number of branches to over 400 by FY23.
“Indel closed FY21 with a live gold loan AUM of Rs 580 crore, up from Rs 336 crore in FY20, and is targeting Rs 850 crore AUM in the worst-case scenario and Rs. ,000 crore in the best scenario this fiscal and to top Rs 1,300 crore by FY23,” Mohanan added.
Diversified Indel Corporation with over Rs.1,000 crore revenue made a foray into gold loans in 2013, offering a one-year gold loan and first-ever long-term gold loan with two-year tenure.
The organized gold loan market is projected to clock Rs. 4.6 lakh crore this fiscal.